Fastly(US:FSLY)2025-05-07 20:08Financial Performance - Total revenue for Q1 2025 was $144.5 million, representing an 8% year-over-year growth[9]. - Q2 2023 revenue was $122.831 million, increasing to $144.474 million by Q1 2025, representing a growth of approximately 17.6%[36]. - Gross profit for Q2 2023 was $70.366 million, with a projected increase to $82.853 million by Q1 2025, indicating a growth of about 17.8%[36]. - Gross profit for Q3 2023 was $66.086 million, with an expected increase to $76.798 million by Q1 2025, indicating a growth of about 16.2%[32]. - The company reported a net loss of $(3.779) million in Q2 2023, with a projected loss of $(6.597) million by Q1 2025, indicating a worsening financial position[36]. - Net loss for Q3 2023 was $54.311 million, with a projected decrease to $39.148 million by Q1 2025, indicating an improvement of about 28%[32]. - The company reported a net loss of $54,311 thousand in Q3 2023, an increase from a net loss of $10,704 thousand in Q2 2023[40]. - Non-GAAP operating loss for Q2 2025 is projected to be between $8.0 million and $4.0 million, with a non-GAAP net loss per share between $0.08 and $0.04[5]. Customer Metrics - The enterprise customer count increased to 595, up 18 from Q1 2024, while total customer count decreased to 3,035, down 255 from Q1 2024[9]. - Fastly's top ten customers accounted for 33% of revenue in Q1 2025, down from 38% in Q1 2024[9]. - Last 12-month net retention rate (LTM NRR) decreased to 100% in Q1 2025 from 102% in Q4 2024[9]. Cash Flow and Expenses - The company generated $8.2 million of positive free cash flow in Q1 2025, compared to $2.2 million of negative free cash flow in Q1 2024[9]. - Free cash flow for Q3 2023 was negative at $(19,694) thousand, a decline from $7,753 thousand in Q2 2023[41]. - Total operating expenses in Q2 2023 were $77.311 million, projected to rise to $88.698 million by Q1 2025, an increase of about 14.7%[36]. - Total operating expenses in Q3 2023 were $124.428 million, with a forecasted decrease to $114.977 million by Q1 2025, reflecting a reduction of approximately 7.5%[32]. Research and Development - Research and development expenses in Q3 2023 were $39.068 million, expected to decrease to $37.429 million by Q1 2025, a reduction of approximately 4.2%[32]. - Research and development expenses were $25.216 million in Q2 2023, expected to increase to $28.536 million by Q1 2025, a growth of approximately 13.0%[36]. - Research and development expenses for Q3 2023 were $39,068 thousand, with non-GAAP R&D expenses at $26,236 thousand, highlighting a focus on innovation[33]. Financial Health and Liabilities - Long-term debt decreased from $472,823 thousand in Q3 2023 to $149,874 thousand in Q1 2025, a reduction of about 68.3%[39]. - Total liabilities decreased from $672,091 thousand in Q3 2023 to $492,222 thousand in Q1 2025, reflecting a decrease of approximately 26.7%[39]. - Total current assets decreased from $551,458 thousand in Q3 2023 to $440,195 thousand in Q1 2025, representing a decline of approximately 20.2%[39]. - Total stockholders' equity decreased from $968,572 thousand in Q3 2023 to $957,023 thousand in Q1 2025, a slight decrease of approximately 1.6%[39]. - Accumulated deficit increased from $811,366 thousand in Q3 2023 to $1,031,958 thousand in Q1 2025, indicating a worsening of about 27.1%[39]. Product Development and Recognition - Fastly released several new products, including Fastly Client-Side Protection and Fastly HTTP Cache API, enhancing its service offerings[8]. - Fastly's Next-Gen WAF was recognized as a Strong Performer in The Forrester Wave™: Web Application Firewall Solutions, Q1 2025[9]. - Product package deals in Q1 2025 more than doubled year-over-year, with new logo packages growing over 80% year-over-year[8]. Future Outlook - Future outlook includes continued focus on market expansion and product development, with an emphasis on maintaining cost efficiency and improving margins[33]. - Management emphasizes that non-GAAP financial measures provide a clearer view of the company's core business performance and facilitate comparisons with peers[30]. - The company plans to exclude amortization of capitalized stock-based compensation from non-GAAP financial measures starting Q1 2025, enhancing the clarity of financial performance[34].